March 20, 1995 Allied Clinical Laboratories
Allied Clinical Laboratories has agreed to pay $4.9 Million Dollars to settle claims asserted in a qui tam action filed by two private relators. The allegations of the case were that Allied defrauded the government by billing the government for certain blood tests which no doctor had diagnosed to be medically necessary. Medicare regulations provide that Medicare will not pay for certain types of blood tests at issue, unless a patient’s doctor provides a diagnosis which shows that such tests are medically necessary.
The two relators who filed the qui tam case, will likely receive a share of the $4.9 Million Dollars settlement, for having filed the case.
See U.S. Dept of Justice Press Release 3/20/95